Aussies filling savings accounts 'are being prudent'

Mozo

Friday 05 August 2011

Putting money into savings accounts is a sound financial plan and one that is appropriate in the current economic climate, an expert has suggested.

Aussies advised to put money in savings accounts

Speaking to the Chronicle, Bell Potter Securities adviser John White said the "wait-and-see" approach adopted by consumers is unsurprising.

"Apart from re-balancing portfolios, people should be doing what they are doing – saving money," he stated.

He asserted that the reticence of Aussies to spend or borrow is a natural reaction to the current volatility of the nation's economy.

Earlier this year, figures from the Reserve Bank of Australia revealed that households are putting up to ten per cent of their disposable income into savings accounts.

Data from the Australian Bankers' Association revealed that by the end of May this year, consumers had saved up to $496 billion.

Mr White suggested that a cautious approach to investing money is prudent at the moment, adding that borrowing may not be advisable.

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